We are at stage A with 20% loss and possibly seeing turning point going into stage B. We can’t tell certainly. If market follows the Subprime ‘plan’, there is another 10% loss coming that belongs to stage A.

Stage B likely to recover half of losses of A. I call this the sucker’s rally. Don’t get trapped.

Top of stage B is the best point for long term investors to exit their positions or complete portfolio restructuring. This is the point where aggressive traders position for short selling. Expect lower high.

Stage C will be the killer that will test every investor’s pain level. Expect lower low.

Stock market crash guide

I wrote a ‘9-point market crash guide for bulls and bears’ early this July. Click here to read more.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.